Tax-Funded 'Public Administration' Jobs Increase by 180,000... Highest Since Financial Crisis

COVID-19 Resurgence... Deterioration of In-Person Service Employment
Manufacturing Declines for 13 Consecutive Months... Decrease Rate Narrows
Accommodation and Food Services See Largest Drop Since January 2004

[Asia Economy Reporter Kim Bo-kyung] Last month, the re-spread of the novel coronavirus infection (COVID-19) severely impacted employment in face-to-face service industries such as lodging and food services. Government and local government direct jobs created with tax funds played a buffering role. Public administration jobs increased the most in 11 years since the financial crisis.

According to the 'September Labor Market Trends' announced by the Ministry of Employment and Labor on the 12th, the number of employment insurance subscribers last month recorded 14,128,000, an increase of 337,000 compared to the same month last year.

Kwon Ki-seop, Director of Employment Policy at the Ministry of Employment and Labor, explained at a briefing that "the slowdown in the increase of employment insurance subscribers due to COVID-19 has been gradually improving since May, but it has not yet reached the level of March."

The number of employment insurance subscribers increased by 374,000 in the service industry, driving the overall increase in subscribers. Manufacturing showed a decline for 13 consecutive months. The decrease was 51,000, narrowing compared to the previous month (-63,000).

The sector with the largest increase in the service industry was public administration. It increased by 181,000 compared to the same month last year. This is the largest increase in about 11 years since November 2009 (227,000), when the financial crisis occurred.

The expansion of job projects led by the government and local governments, such as the COVID-19 Overcoming Hope Job Project, had a significant impact. Most of these are supplementary budget projects temporarily operated until the end of this year. Depending on the prolongation of COVID-19, the job situation next year may worsen further.

The lodging and food service industry decreased by 13,000 compared to the same month last year. This is the largest decrease since January 2004 (-14,000). The business support service industry also saw an expanded decrease (-14,000) mainly in labor supply and travel industries due to the re-spread of COVID-19.

Director Kwon stated, "While employment instability is increasing in face-to-face service industries greatly affected by social distancing, sectors related to supplementary budget projects such as public administration, professional scientific technology, and information and communication have driven the increase."

Meanwhile, the number of new job-seeking benefit applicants last month was 99,000. The number of new applicants increased by 28,000 compared to the same month last year, and the growth rate expanded to 39.4%.

By industry, applications were mainly from manufacturing (16,700), wholesale and retail (13,400), construction (11,800), lodging and food services (10,200), business services (9,200), and health and welfare (8,700).

The total number of job-seeking benefit recipients was 698,000, and the total benefit amount was 1.1663 trillion won.

This content was produced with the assistance of AI translation services.